Registry Afilias dumps planned IPO — Domain name
Registry had planned to float in November.
Domain name registry Afilias has pulled plans for a $100 million initial public offering, as noted by Domain Incite this morning.
A firm spokesperson told Domain Incite, “The final decision to cancel the IPO was based on market conditions at the time.”
Given that stock markets are at record highs, that’s a euphemism for “investors weren’t interested in our IPO”.
While stock markets are doing well, the same can’t be stated for domain name stocks. I’m sure this weighed heavily on investors considering Afilias’ stock. Shares in Rightside, Minds + Machines and CentralNic (all competitors to Afilias) dropped by at least 40% last year.
I also wonder how Afilias’ .info and .mobi revenue streams are holding up in the face of fresh top level domain names.
Afilias planned to use the money to acquire contested fresh TLDs in upcoming auctions, acquire existing TLDs and domain name businesses, and develop the firm’s registrar business to become a vertically integrated operation. Afilias’ competitors for fresh top level domain names won’t have to fear the firm as much in contention set auctions going forward.
The firm was to list on London’s Alternative Investment Market (AIM).
